From cacao to chocolate

THE CHALLENGE

Colombia’s 100 000 smallholder cacao farms – traditionally run by rural families, often as part of cooperatives – produce the vast majority of the country’s cacao. In recent years, their production has declined as a result of the spread of tree diseases, tree ageing and effects of climate change as well as their limited access to training in environmentally sustainable farming techniques that would boost their output long term. In Colombia as elsewhere, cacao is usually harvested in areas without suitable infrastructure, such as serviceable roads for getting cacao to market. All these factors conspire to keep smallholder cacao farmers in financially difficult situations, fuelling problems like social disintegration and poor access to health services.

Yet global cacao demand remains strong. Indeed, in recent years, supply has failed to keep up with it. To tap profitably into that demand, smallholder cacao farmer cooperatives have a strong incentive to do business directly with chocolate producers. This can help them not only achieve higher margins by reducing their dependence on middlemen, but also boost their product’s attractiveness to premium chocolatiers that value traceability, single-origin production and the possibility of using organic, bio or fair trade labelling.

Building direct relationships with chocolate producers can also give smallholder farmer cooperatives a better understanding of market demands. For instance, whereas productivity and quality may count most on the supply side, chocolate producers have a preference for cacao flavour ‘profiles’.

THE APPROACH

Facing the challenges just described, two smallholder cacao cooperatives in Afro-Colombian communities in the Valle del Cauca, Colombia, decided to collaborate with the Eos Entrepreneur Foundation in this project. The cooperatives had previously cultivated cacao in the traditional way. Effects of climate change, a commitment to environmental sustainability and a need to reach financial stability inspired them to rethink their approach, addressing such basic questions as which cacao trees are most resistant to climate change.

The Eos Entrepreneur Foundation’s role is to:

Bring its long-standing experience and dedicated coaches with specific knowledge of the subject matter, such as agronomists, to the project

Use synergies throughout the end-to-end value chain, thereby promoting collaboration among the stakeholders and beyond

Engage directly with smallholder cacao farmer cooperatives, supporting them with passion and respect

Work with smallholder cacao farmer cooperatives to achieve self-sustainability

GOALS AND EXPECTED IMPACT

The project coaches the participating farmer cooperatives in Valle del Cauca to help them:

Improve professional skills and competencies

Act on the findings of research on cacao trees’ resilience to climate change

Optimise the value chain

Reach financial sustainability

Achieve a positive social and environmental impact under changing circumstances

The direct beneficiaries are the 130 smallholder cacao farmers who belong to the two cooperatives. Around 1 000 of their family and community members are expected to benefit indirectly from the project.

Eos Entrepreneur Foundation

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Eos Entrepreneur Foundation coaches social entrepreneurs in Latin America and remote regions in Switzerland, who address social and environmental challenges in vulnerable communities while reaching financial sustainability. As a result, the communities improve their livelihood base and become more resilient.

Natural Hazard and Climate Risk Management

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